RBI says India GDP will contract in FY21, cuts repo rate by 40 bps to 4%

RBI extends the moratorium on loan repayments by three more months

In a new set of measures to trim the impact of coronavirus on the economy, the Reserve Bank of India (RBI) on Friday decided to cut the policy rate by 40 basis points from 4.4 per cent to 4 per cent. The reverse repo rate has been reduced to 3.35 per cent. It has also extended the moratorium on loan repayments by three more months.

In a video conference, RBI Governor Shaktikanta Das said the central bank's Monetary Policy Committee (MPC) had voted to maintain its "accommodative" stance and members voted 5-1 on the quantum of the rate reduction.